Weekly update: November 14, 2008

The live-cattle trade Friday morning was light in Nebraska (after an active trade Wednesday and Thursday) and moderate to active on the Southern Plains. USDA’s mandatory price reporting (MPR) service reported that Nebraska sold 4,548 head at $143.57 dressed and $91.87/cwt. live for a weekly total of 58,107 head. Kansas sold 14,096 head at $92.92/cwt., or $147.85 dressed for a weekly total of 15,167 head. Texas sold 23,415 head at $92.98 or $147.50 dressed for a weekly total of 29,262 head. USDA’s voluntary report estimated sales of 63,000 head. The MPR weekly totals include negotiated cash and grid sales.

Live-cattle futures all closed lower except for October. December closed down 50 points at $90.05/cwt. ($92.80 last Friday), February closed down 105 points at $90.67, April closed down 87 points at $91.95, June closed down 102 points at $88.62 and August closed down 47 points at $88.42.

The week’s cattle slaughter was an estimated 616,000 head (647,000 head the same week last year), with Friday’s kill 120,000 head and Saturday’s 27,000 head. Year-to-date FI slaughter is an estimated 29.962M head, 0.2% higher than 2007’s 29.905M head. Hog slaughter year to date is up 7.0%.

Boxed-beef cutout values were weak on light demand and offerings. The Choice cutout declined $0.35/cwt. to $157.02/cwt. ($150.25 last Friday) while the Select cutout declined $0.31 to $146.18. The Choice-Select cutout price spread was $10.84/cwt., compared to $7.75/cwt. last Friday. The reported spot boxed beef trade for the week was 872 loads of fabricated cuts, 19.1% lower than last week’s 1,088 loads.

Packer margins for the week were positive by $7.46/head, compared to a negative $26.02 the week before, according to HedgersEdge.com.